AEPC Urges Government to Raise Interest Subvention to 5% and Expand Export Support

Council seeks enhanced financial incentives, EPCG relief and continued policy support to strengthen apparel exports and contribute to India's $1 trillion export target.

The Apparel Export Promotion Council (AEPC) has sought an enhancement of the Interest Subvention Scheme, proposing that the benefit be increased from 2.75% to 5%, with coverage extended to all exporters and the removal of the annual cap.

Speaking at the Board of Trade (BoT) meeting held in New Delhi on July 3, A. Sakthivel, Chairman of AEPC, said the apparel industry could make a significant contribution towards achieving India's $1 trillion export target in 2026-2027, supported by expanded market access through Free Trade Agreements (FTAs) and continued policy support.

He said:

"With expanded market access through Free Trade Agreements (FTAs) and continued policy support, we are confident that the apparel sector will make a significant contribution towards achieving the $1 trillion export target in 2026-2027."

AEPC also requested the government to provide relief under the Export Promotion Capital Goods (EPCG) Scheme by relaxing the average export obligation requirements for exporters affected by market disruptions, particularly those dependent on the U.S. market.

The Council further recommended that the RoSCTL Scheme be continued for another three years, with benefits extended to exporters operating under the Advance Authorisation, Export Oriented Unit (EOU) and Special Economic Zone (SEZ) schemes.

Among its additional recommendations, AEPC proposed the creation of a dedicated Green Transformation Fund to provide long-term soft loans for sustainability-related investments and Environmental, Social and Governance (ESG) compliance.

The Council also suggested introducing a special scheme for the apparel sector to simplify the duty-free import of fabrics. In addition, it recommended making the Registration-cum-Membership Certificate (RCMC) mandatory for exporters seeking to avail themselves of export promotion schemes.

Referring to India's expanding trade agreements, Union Commerce Minister Piyush Goyal said the country has concluded or operationalised FTAs with 38 countries, covering nearly 65% of the developed world under India's FTA network. According to the Minister, these agreements have significantly expanded market access for Indian exporters.

The Council stated that coordinated efforts from all stakeholders would be important to achieve higher export growth.